The Trudeau government yesterday announced new quotas and safeguard tariffs as part of a concerted effort to avoid becoming a dumping ground for surplus steel in the wake of Trump’s metals tariffs.
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In a harsh statement, the Trump administration complains that the global steel forum has done little to address the problem of steel overcapacity, at a time when Chinese output continues to set records.
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Finance Minister Bill Morneau says there is concern a surge in diverted foreign steel may already be disrupting the market and has launched consultations on potential new safeguard measures.
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Testifying before lawmakers, USTR Robert Lighthizer claimed the Section 232 trade measure is only effective if is applied globally, despite this approach also harming countries regarded as key allies.
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The Trudeau government is considering imposing provisional safeguard measures to curb an influx of cheap foreign steel being diverted from the U.S., a move already taken by the European Union.
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